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SPECIAL REPORT: How soaring cooking gas prices are squeezing Nigerian households, businesses

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By: Abdulkareem Mojeed, Ekemini Simon, Chuwang Dungs, Famrah Bagudu, Fortune Eronmonsele, Oluwakemi Adelagun, Abubakar Ahmadu Maishanu, Auwal Umar, Ogalah Dunamis, Afolabi Joseph, Manasseh Mbachii, Emmanuel Agbo, Abubakar Abdulrasheed, Oluwole Josiah, Falmata Daniel, Folashade Ogunrinde, Idowu Omotoyosi, and Chinagorom Ugwu

In June, Lagos fashion designer Lolade Fayemi took her 6kg gas cylinder to refill station in Baruwa, Iyana-Ipaja, with plans to buy 2kg of cooking gas. But to her dismay, she discovered that the price had jumped from about ₦1,700 per kilogramme to ₦2,500 within a week. She could only afford and eventually paid for 1 kilogramme.

“The price is ridiculous. You still spend money on transportation to the gas station, and the gas may not even serve you for a week,” she told PREMIUM TIMES in July.

Ms Fayemi’s experience mirrors that of millions of Nigerians after the price of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, increased following supply disruptions triggered by the war involving Iran, the United States and Israel.

Energy experts and players across the supply chain said the increase was compounded by longstanding domestic challenges, including inadequate infrastructure, inconsistent government policies and Nigeria’s dependence on imported LPG.

Although PREMIUM TIMES’ survey in July showed that prices have begun to ease after peaking in late June, consumers say the relief has been modest, with cooking gas still selling well above levels recorded just two months ago.

A PREMIUM TIMES survey across Nigeria’s six geopolitical zones found that LPG prices rose from about ₦1,100–₦1,350 per kilogramme in April and May to between ₦1,700 and ₦2,200 in late June, with some outlets charging as much as ₦2,500.

By the first week of July, prices had eased to between ₦1,250 and ₦1,800 per kilogramme, but many households continue to buy smaller quantities, postpone refills or return to traditional means of cooking with the use of firewood and charcoal.

In Lagos, scarcity created a sellers’ market

Navgas Terminal/Depot, Creek Road, Apapa, Lagos
Navgas Terminal/Depot, Creek Road, Apapa, Lagos

Retailers in Lagos attributed the price spike to shortages at coastal depots and uncertainty in international energy markets during the recent Middle East tensions.

Lateef Badmus, manager of Al-Moruff Gas Plant along LASU-Iba Road, said retail prices largely reflected wholesale costs.

“When there is scarcity and demand is high, prices increase because consumers have little choice,” he said.

Damilola Adeyoriju, administrator at Casco Gas, described the period as a “man-know-man” market, where access to supplies depended largely on personal relationships.

“The few marketers that had products sold mainly to people they knew. Getting even one truck became difficult,” she said.

Across Lagos, however, prices have begun to moderate.

At Al-Moruff Gas in Kosofe, cooking gas sold for about ₦1,450 per kilogramme, down from around ₦2,000 at the peak of the supply crisis. Starco Filling Station in Orile reduced its price to ₦1,800 from over ₦2,000, while NIPCO outlets in Jakande Estate sold between ₦1,500 and ₦1,550 per kilogramme after previously charging as much as ₦1,700.

Starco Gas Station in Orile, Lagos
Starco Gas Station in Orile, Lagos
Starco Gas Station in Orile, Lagos
Starco Gas Station in Orile, Lagos

Consumers said the temporary spike significantly increased household expenses.

Enomfon Okure, an oncology nurse, said she paid ₦2,100 per kilogramme in June compared to about ₦1,700 in May.

“The hike affects everything because cooking gas is our only reliable means of cooking. We don’t have regular electricity, so we simply adjust and pay,” she said.

Another resident, Ajura Oseme, said the increase forced her to temporarily return to charcoal before prices started easing.

In Ondo, households returned to firewood

Prices followed a similar pattern in Akure, the capital of Ondo State, rising from about ₦1,300 per kilogramme in April to around ₦1,700 in late June before easing to about ₦1,400 in early July.

The increase forced many residents to reduce usage and embrace traditional cooking methods.

Jo Uanzekin, a resident of Oda, said although he took his 12.5kg cylinder for a refill, he could afford only 5kg.

“I am managing that one for now while supporting it with firewood from my farm,” he said.

Joshua Nambur, who buys cooking gas at a NIPCO station in Akure, said he now purchases only one to one-and-a-half kilograms at a time.

Nipco gas

Marketers also reported declining patronage.

Shuaibu Aminu, operations manager at Shaffa Filling Station, said the station sold LPG for about ₦1,350 per kilogramme in May before prices rose to ₦1,600 and later eased to around ₦1,400.

Rotimi Adamolekun, manager of SCAAB Gas, said the recent drop in wholesale prices left many marketers selling at a loss.

“My last purchase was ₦28 million for 20 tonnes. Now the same quantity sells for ₦22 million, so we have to sell at a loss,” he said.

In many rural communities of Ondo state, households reverted to firewood and charcoal, while some urban residents with relatively stable electricity increasingly relied on electric cookers.

A similar trend emerged in Oyo and Osun states, where cooking gas prices fell after peaking at ₦1,700 and ₦2,000 per kilogramme during the supply crisis.

A PREMIUM TIMES survey found that stations in Ibadan and Osogbo now sell LPG for between ₦1,250 and ₦1,420 per kilogramme.

At Petrocam Gas Station in Ibadan, the manager, Bello Olaniyi, attributed the decline to lower depot prices.

“Many customers could not afford to refill their cylinders when prices rose. They simply bought smaller quantities,” he said.

John Israel, an attendant at an MRS Filling Station, linked the volatility to supply disruptions and Nigeria’s continued dependence on imported LPG.

In Osogbo, marketers expressed similar concerns.

Maruf Adeniyi, manager of an A.A. Rano outlet, said Nigeria remained vulnerable to global price movements because domestic supply was still inadequate.

“We’re currently selling at about ₦1,350 per kilogramme, which is much lower than last week. But unless domestic production improves, price fluctuations will continue,” he said.

For businesses that rely heavily on cooking gas, the recent decline has offered some relief.

Victoria Okechi, who runs a food business in Osogbo, said the increase forced her to raise food prices to stay afloat.

Although she welcomed the recent reduction in prices, she warned that another spike would leave many small businesses with little choice but to increase prices again.

Across the South-west, consumers and marketers expressed cautious optimism that prices would continue to fall.

However, many warned that without stronger domestic LPG production and a more resilient supply chain, Nigerian households would remain vulnerable to future global supply shocks.

North-central: Households, businesses remain under pressure

Cooking gas prices have begun to moderate across the North-central region after weeks of sharp increases, but households, retailers and small businesses say the decline has brought only limited relief.

A PREMIUM TIMES survey in Abuja, Benue, Plateau and Niger states found that LPG prices, which climbed to ₦2,000 per kilogramme at the height of the crisis, have eased to about ₦1,450–₦1,600 in many outlets. Even so, consumers continue to buy smaller quantities or supplement cooking with charcoal and firewood.

In Abuja, Mustapha Abubakar, manager of AA Rano Gas along the Karshi Bypass, linked the increase to disruptions in global energy markets following tensions involving Iran.

He said prices at the outlet rose to ₦1,750 per kilogramme before falling to ₦1,450 as supply improved.

A gas dealer, Luka Samuel. (PHOTO CREDIT: Fortune Eromonsele)
A gas dealer, Luka Samuel. (PHOTO CREDIT: Fortune Eromonsele)

Independent retailer Luka Samuel said higher procurement and transportation costs squeezed marketers’ margins, forcing many to raise prices.

He noted that customers who previously refilled 6kg or 12.5kg cylinders now buy only two or three kilograms at a time.

The impact has also been severe for small businesses.

Helen Ikwuoche, who runs a restaurant within the Nigerian Police Force Headquarters. . (PHOTO CREDIT: Fortune Eromonsele)
Helen Ikwuoche, who runs a restaurant within the Nigerian Police Force Headquarters. . (PHOTO CREDIT: Fortune Eromonsele)

Helen Ikwuoche, who runs a restaurant within the Nigerian Police Force Headquarters in Abuja, said the cost of refilling her 12.5kg cylinder increased from about ₦12,000 to more than ₦22,000 during the peak of the crisis.

To stay in business, she began using charcoal to prepare some meals.

Market checks showed LPG selling for about ₦1,500 per kilogramme at RainOil, ₦1,550 at NIPCO and ₦1,616 at LUBGAS. Retailers said patronage declined sharply during the price spike as customers reduced purchases.

Rain oil gas station's price list
Rain oil gas station’s price list

In Benue State, many households have also rationed gas consumption.

Doosuur Demingor carries gas cylinder after purchasing cooking gas at Jinson Gases Nigeria Limited in Makurdi, Benue State. (PHOTO CREDIT: Manasseh Mbachi/Premium Times)
Doosuur Demingor carries gas cylinder after purchasing cooking gas at Jinson Gases Nigeria Limited in Makurdi, Benue State. (PHOTO CREDIT: Manasseh Mbachi/Premium Times)

A resident of Makurdi, Enoch Nyita, said the ₦6,000 with which he filled his 5kg cylinder when gas sold for about ₦1,250 per kilogramme now covers less than 3kg after prices rose to around ₦1,950.

His family now relies on charcoal for meals that require longer cooking duration. Other residents reported similar adjustments, while efforts to obtain comments from major LPG retailers in Makurdi were unsuccessful.

In Plateau State, retailers blamed the increase on the high cost of transporting LPG from coastal depots to the region.

At GDS Gas Plant in Jos, an off-taker, Dalla George, said customer traffic dropped significantly as many buyers reduced purchases from about 5kg to just 2kg.

Albarka Danladi, a small business owner, said soaring cooking gas prices forced him to shut down the food section of his business, while marketers warned that sustained increases could push more households back to firewood and charcoal.

In Niger State, prices have also moderated.

PREMIUM TIMES found that AA Rano reduced its price from ₦1,750 to ₦1,450 per kilogramme, while El-Shabab Gas sold at about ₦1,500 and Admar Gas at ₦1,600.

Consumers welcomed the reductions but said prices remained far above what many households could comfortably afford.

South-east: Consumers continue to feel the squeeze

Across the South-east, cooking gas remains significantly more expensive than it was just a few months ago despite recent price reductions in some parts of the country.

In Enugu State, PREMIUM TIMES found that LPG currently sells for between ₦1,650 and ₦1,700 per kilogramme.

Uchenna Okegbe, a point-of-sale operator, said the high cost of cooking gas continues to strain household finances.

“What we suffer now is that after refilling our cylinders, we are unable to afford food items,” he told PREMIUM TIMES in Igbo.

He said the increase has worsened economic hardship because LPG remains the primary cooking fuel for many urban households.

Anthony Ogbu, a cooking gas depot owner, attributed the high prices to inadequate product supply across the country.

Surveys in other parts of the South-east showed LPG selling for between ₦1,600 and ₦1,700 per kilogramme in Abia and Anambra states, while prices ranged from ₦1,700 to ₦2,200 in Imo and Ebonyi states.

North-west & North-east: Households cut consumption as prices remain elevated

Cooking gas prices remain high across Kano, Katsina and Gombe states despite recent easing in some markets, forcing households to reduce consumption while retailers cite higher logistics costs, supply disruptions and global market volatility.

In Kano, PREMIUM TIMES’ survey found that LPG sold for between ₦1,400 and ₦1,750 per kilogramme after peaking at a high of ₦2,000 during the periods of supply crisis.

Ayuba Isah, an attendant at Isa Gulu Gas in Gwale Local Government Area, said prices remain unpredictable.

“Prices can increase at any moment. Sometimes customers are still in the queue when we receive instructions to adjust prices,” he said.

Nipco gas

For consumers, the increases have stretched already strained household budgets.

Bature Muhammad said refilling his 6kg cylinder rose from about ₦7,500 in June to more than ₦10,000 within weeks.

At Marhaf Gas Station, a civil servant, Isma’il Mu’azu, said he now struggles to refill his 12kg cylinder because his salary has remained unchanged despite rising living costs.

“Once I pay for food, water and electricity, nothing is left,” he said, adding that although his family occasionally uses charcoal, the savings are minimal.

Musadiq Muhammad, manager of AA Rano Gas on Zaria Road, attributed the spike to uncertainty in international energy markets during the recent Middle East conflict.

He said marketers became reluctant to buy large volumes because of volatile wholesale prices, contributing to temporary shortages.

AA Rano now sells LPG for about ₦1,400 per kilogramme after prices eased.

In Katsina, cooking gas remained readily available, although prices varied between ₦1,600 and ₦1,950 per kilogramme. Retailers blamed transportation costs, diesel prices, distance from coastal depots and other supply-chain expenses.

The manager of Ultimate Gas, who identified simply as Muhammed, said retailers passed on prices set by suppliers.

“Gas comes from Port Harcourt or Lagos, and transporting it over that distance consumes a lot of diesel,” he said.

At Butane Energy, manager Abubakar Abdullahi said improved supply had recently pushed prices down slightly, while Shafa Energy reported that customers increasingly buy smaller quantities instead of filling entire cylinders.

Many households and small businesses also said travelling to larger stations offering cheaper prices often turn out as counter-productive because the supposed savings are wiped off by transport and logistic costs.

A food vendor in Katsina said he now buys gas from nearby retailers despite the higher price because transport costs renders traveling to distant outlets because of relatively cheaper price “uneconomical”. Rather than increase menu prices, he said he has reduced portion sizes.

In Gombe State, residents reported a similar experience.

Retailers said higher depot prices, transportation costs and supply disruptions drove up prices, while consumers increasingly delayed refilling cylinders or bought only small quantities.

Amina Muhammad, a mother of three, said her family now carefully considers when to refill its cylinder because food and other household expenses have also increased.

Although there were no widespread shortages, marketers reported poor patronage as consumers adjusted their spending.

South-south: Even gas-producing communities feel the pain

Despite being one of Nigeria’s largest gas-producing states, many households in Akwa Ibom are buying less cooking gas, changing their diets and returning to firewood as LPG prices remain elevated.

Christiana John at a Gas retailer shop in Esit Eket LGA, Akwa Ibom
Christiana John at a Gas retailer shop in Esit Eket LGA, Akwa Ibom

When Christiana John, a mother of six in Uquo, Esit Eket Local Government Area, visited a gas outlet with her 4kg cylinder at the peak of the crisis, she could afford only 1kg.

“I used to fill the entire cylinder. Now I can only buy one kilogramme,” she told PREMIUM TIMES.

Her family now cooks only once a day, avoids meals that require long cooking times and often eats soup without reheating it.

Her experience highlights a striking paradox.

According to the latest Nigeria Extractive Industries Transparency Initiative (NEITI) report, Akwa Ibom accounted for about 28 per cent of Nigeria’s gas production in 2023, yet many residents say cooking gas has become increasingly unaffordable.

A survey across Esit Eket, Eket, Ikot Ekpene, Abak, Uyo and Ibesikpo Asutan found retail prices ranging from ₦1,500 to ₦1,900 per kilogramme, although prices exceeded ₦2,000 during the June supply disruption.

In Uquo, retailer Enombang Derek said customers have not stopped buying gas but now purchase much smaller quantities.

“People who used to buy 10kg now buy about seven. Those who bought four kilogrammes now buy one-and-a-half,” he said.

In nearby Eket, PREMIUM TIMES observed long queues at Hydrogas, where LPG sold for ₦1,550 per kilogramme.

Customers at point of payment and sales at Hydrogas, Eket, Akwa Ibom State
Customers at point of payment and sales at Hydrogas, Eket, Akwa Ibom State
Customers at point of payment and sales at Hydrogas, Eket, Akwa Ibom State
Customers at point of payment and sales at Hydrogas, Eket, Akwa Ibom State

A resident, Kingsley Umoette, said cooking gas now consumes nearly one-third of his income, forcing him to cook less and eat more meals outside the home.

Hydrogas supervisor Nelson Williams said households continue to buy LPG despite widespread complaints because there are few alternatives.

Kingsley Umoette at Hydrogas, Eket
Kingsley Umoette at Hydrogas, Eket

“We have gone past the age of abandoning gas. People complain every day, but they still buy because there is no alternative,” he said.

In Ikot Ekpene, a retired teacher, Juliana Umoh, said she now spends about ₦31,000 each month on cooking gas from her ₦107,000 pension.

Manager of Basumoh Gas Plant, Umoh Edet, said customers increasingly buy smaller quantities as incomes fail to keep pace with rising prices.

Umoh Edet, Manager of Basumoh Gas Plant, Ikot Ekpene, Akwa Ibom State.
Umoh Edet, Manager of Basumoh Gas Plant, Ikot Ekpene, Akwa Ibom State.

Across Abak and Ibesikpo Asutan, retailers sold LPG for between ₦1,750 and ₦1,900 per kilogramme, citing older stock purchased at higher wholesale prices and transportation costs.

The largest crowds were recorded in Uyo, where AA Rano sold cooking gas for ₦1,500 per kilogramme. PREMIUM TIMES observed more than 100 customers waiting to refill cylinders, with some having reportedly waited for more than four hours.

Station Manager, AA Rano, Uyo, Akwa Ibom State, Usman Yahaya
Station Manager, AA Rano, Uyo, Akwa Ibom State, Usman Yahaya

Station manager Usman Yahaya said prices remain about 35 per cent higher than before the June spike.

“Customers now buy in anger because they are struggling to survive,” he said.

He attributed AA Rano’s relatively lower prices to the company’s integrated supply chain, which allows it to source LPG directly and operate on slimmer margins.

Queue waiting to buy gas at AA Rano Gas station, Uyo, Akwa Ibom State
Queue waiting to buy gas at AA Rano Gas station, Uyo, Akwa Ibom State
Queue waiting to buy gas at AA Rano Gas station, Uyo, Akwa Ibom State
Queue waiting to buy gas at AA Rano Gas station, Uyo, Akwa Ibom State

Elsewhere in the Niger Delta, prices also remain elevated despite recent declines.

In Port Harcourt, most outlets sell LPG at about ₦1,800 per kilogramme.

Mercy Francis said she could afford only 4kg instead of the 6kg she previously bought.

“I was so hurt spending that amount of money. These four kilograms won’t even last me one month,” she said.

In Yenagoa, prices ranged from ₦1,350 to ₦1,450 per kilogramme across major stations, while outlets in Asaba sold LPG for between ₦1,800 and ₦2,000 per kilogramme.

Across the South-south, consumers welcomed the recent moderation in prices but said cooking gas remains beyond the reach of many low-income households.

Why cooking gas prices keep rising

Nipco gas
Nipco gas

Industry operators say Nigeria’s recurring cooking gas price shocks stem from a combination of global market disruptions and longstanding domestic structural weaknesses.

Segun Adigun, Executive Director of Thruvision Gas Plant in Abuja, said policy inconsistencies, inadequate infrastructure and the country’s dependence on imported LPG continue to expose consumers to price volatility.

He explained that for many years, producers exported most of Nigeria’s LPG because contracts signed before domestic demand expanded did not prioritise local supply.

Although the administration of former President Muhammadu Buhari renegotiated some agreements to reserve a portion of production for the domestic market, he argued that subsequent policies made local sales less attractive, encouraging producers to export again.

According to him, international developments have further complicated the situation.

The Russia-Ukraine war increased European demand for LPG, while the recent military confrontation involving Iran, Israel and the United States disrupted global energy markets, pushing up prices and replacement costs for importers.

“Nigerian producers naturally prioritise markets where they earn more, while local marketers face higher replacement costs, shipping delays and uncertainty,” he said.

Mr Adigun said weak domestic infrastructure also continues to inflate costs.

“Poor pipeline networks force marketers to transport LPG over long distances by road, increasing logistics costs and delaying deliveries,” he said.

He urged the government to expand gas transportation infrastructure and implement consistent long-term energy policies to improve domestic supply, reduce transportation costs and stabilise prices.

Government intervention begins to ease pressure

Last month, the federal government announced emergency measures to address the sharp increase in cooking gas prices after retail prices climbed to about ₦2,000 per kilogramme in Lagos and above ₦1,600 in parts of Abuja.

The intervention followed emergency engagements with producers, marketers and other industry stakeholders aimed at improving domestic supply and calming the market.

According to the latest market intelligence report by the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), the measures have started yielding results.

The association reported that Nigeria’s LPG market rebounded during the week ending 5 July as improved product availability reduced panic buying.

Average depot prices fell by between 10 and 18 per cent from their mid-June peak, with ex-depot prices now averaging between ₦1,050 and ₦1,125 per kilogramme.

Nipco Gas station's price list.
Nipco Gas station’s price list.

Retail prices have also started declining, ranging from about ₦1,100–₦1,350 per kilogramme in Lagos to between ₦1,650 and ₦1,900 in Maiduguri.

However, NALPGAM said significant regional differences persist because of high transportation costs, multiple levies, foreign exchange exposure and inadequate inland storage infrastructure.

Industry data obtained by PREMIUM TIMES illustrates how sharply wholesale prices moved during the crisis.

Before the escalation of the conflict involving Iran, a 20-metric-tonne truckload of LPG sold for about ₦16.5 million. During the height of the disruption, the price rose to approximately ₦27.5 million before falling to around ₦22 million following the ceasefire negotiations.

Major LPG plant operators in Abuja also told PREMIUM TIMES that heavy rainfall has complicated road transportation across parts of the country, increasing delivery costs and slowing distribution.

Some marketers also alleged that higher profit margins in neighbouring countries encourage suppliers to divert products across Nigeria’s borders, tightening domestic supply.

Clean cooking transition policy endangered?

Nipco gas
Nipco gas

The recent surge in cooking gas prices comes at a critical time for Nigeria.

Successive governments have promoted LPG as a cleaner alternative to firewood and charcoal, positioning it as a key component of the country’s energy transition strategy and its efforts to reduce greenhouse gas emissions and improve public health.

Yet the nationwide survey by PREMIUM TIMES shows that rising prices are forcing many households back to traditional cooking fuels, particularly in low-income and rural communities.

Across every geopolitical zone visited, families reported buying smaller quantities of gas, delaying refills, cooking fewer meals and increasingly relying on charcoal and firewood to manage household budgets.

Restaurants, food vendors and other small businesses have also been forced to absorb higher operating costs, raise prices or reduce production.

Although recent government interventions have helped stabilise supplies and moderate prices, industry stakeholders warn that lasting stability will depend on expanding domestic LPG production, strengthening storage and distribution infrastructure, improving transportation networks and maintaining consistent market policies.

Energy experts have argued that until those structural challenges are addressed, Nigerian households will remain vulnerable to periodic cooking gas price shocks, driven as much by domestic bottlenecks as by events thousands of kilometres beyond the country’s borders.

READ ALSO: Minister leads federal delegation to Bille community over gas seepage

Crackdown

As part of efforts to curb soaring cooking gas prices, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, announced in late June that the federal government had directed regulatory and security agencies to crack down on the diversion, hoarding and illegal storage of Liquefied Petroleum Gas (LPG).

Describing the price surge as a national concern affecting households, small businesses and the economy, Mr Ekpo said the government had directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to strengthen market oversight, establish a pricing framework and sanction operators engaging in market distortions. He also asked the regulator to work with the State Security Services (SSS), the Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force to eliminate artificial scarcity and ensure the free movement of LPG.

On supply, the minister said marketers had pledged to increase imports, while expected deliveries from new domestic facilities, including the Seplat gas plant, would boost availability. He added that the government was also pursuing a local blending initiative involving Nigeria LNG Limited, domestic producers and depot owners to improve supply, reduce import dependence and stabilise prices.

“There is no cause for panic,” Mr Ekpo said, adding that the government remained committed to ensuring adequate domestic gas supply and advancing the Decade of Gas Initiative.

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NAICOM Recapitalisation: Universal Insurance Secures ₦7.13B Equity Deal with FPNG, Awaits NAICOM Approval

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BY NKECHI NAECHE-ESEZOBOR—Universal Insurance Plc has entered into an investment agreement with FPNG Co-Nvest Limited (FPNG) for an equity capital injection of ₦7.128 billion via a private placement.

This is contained in notice to Nigerian Stock Exchange limited and to investing public that the deal will see FPNG acquire a 50.1% majority stake in the insurance firm upon completion.

The announcement comes in response to inquiries from NGX Regulation Limited (NGX RegCo) following media reports regarding the National Insurance Commission’s (NAICOM) ongoing recapitalization exercise.

According to a regulatory filing signed by Company Secretary Chinedu Onyilimba, the fresh capital will enable Universal Insurance to comfortably exceed NAICOM’s mandatory regulatory requirements while maintaining a robust solvency margin.

The transaction has already cleared key internal hurdles, receiving full approval from both the Board of Directors and the Company’s shareholders.

Management is currently progressing with regulatory engagements involving NAICOM, the Nigerian Exchange Limited (NGX), and other relevant authorities to finalize the process.

Universal Insurance assured its shareholders and the investing public that it remains committed to regulatory compliance and will disclose further material developments as the recapitalization process unfolds.

The post NAICOM Recapitalisation: Universal Insurance Secures ₦7.13B Equity Deal with FPNG, Awaits NAICOM Approval appeared first on Business Today NG.

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Tax Ombud seeks stronger collaboration with revenue agencies to protect taxpayers’ rights

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The Office of the Tax Ombud has called on revenue-generating agencies to designate liaison officers to strengthen coordination, resolve taxpayer complaints faster and improve accountability within Nigeria’s tax system.

The Tax Ombud and Chief Executive of the Office of the Tax Ombud, John Nwabueze, made the call on Thursday at a stakeholder engagement in Abuja.

The Tax Ombud and Chief Executive of the Office of the Tax Ombud, John Nwabueze
The Tax Ombud and Chief Executive of the Office of the Tax Ombud, John Nwabueze

The engagement, themed “Promoting Fairness, Transparency and Trust in Tax and Revenue Administration in Nigeria,” focused on improving the relationship between taxpayers and government institutions responsible for collecting public revenue.

Mr Nwabueze said the objective of the office was not to undermine revenue collection but to ensure that the exercise of government’s power to collect taxes was matched by fairness, transparency and access to redress.

“Today is not simply about discussing taxation and revenue. It is about strengthening the relationship between the taxpayer and the institutions responsible for administering public revenue,” he said.

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He explained that the Tax Ombud mechanism represented an important development in modern tax administration, where the rights and concerns of taxpayers are considered alongside the need for government to generate revenue.

A panel discussion with representatives of the Manufacturers Association of Nigeria, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, fintech associations and the ICT team of the Office of the Tax Ombud focused on practical measures to improve taxpayer confidence, strengthen dispute resolution, promote digital innovation and foster collaboration between businesses and tax authorities.
A panel discussion with representatives of the Manufacturers Association of Nigeria, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, fintech associations and the ICT team of the Office of the Tax Ombud focused on practical measures to improve taxpayer confidence, strengthen dispute resolution, promote digital innovation and foster collaboration between businesses and tax authorities.

From tax collection to taxpayer protection

Mr Nwabueze traced the development of the Ombudsman system to Sweden, where the modern institution originated in 1809, before specialised taxpayer advocacy emerged in other countries.

He said the United States established the Office of the Tax Ombudsman within the Internal Revenue Service in 1979, marking a shift towards specialised protection for taxpayers within tax administration.

According to him, Nigeria is the ninth country globally and the third in Africa to adopt the tax advocacy mechanism.

He said the establishment of the Nigerian Office of the Tax Ombud under the Joint Revenue Board of Nigeria (Establishment) Act, 2025, was therefore part of a broader international evolution in tax administration.

For years, Nigeria’s tax dispute-resolution system was largely built around objections to tax assessments, administrative reviews, the Tax Appeal Tribunal and the courts.

Mr Nwabueze said those mechanisms remained important, particularly in determining substantive tax liabilities, but there had been a gap for taxpayers facing administrative or procedural difficulties in their dealings with revenue authorities.

He added that the Tax Ombud was created to help fill that gap.

The office receives, investigates and resolves complaints relating to taxes, levies, regulatory fees and charges, customs duties and excise matters.

However, he clarified that its mandate does not extend to determining substantive tax assessments, which fall within the jurisdiction of the appropriate tax dispute-resolution institutions, including the Tax Appeal Tribunal.

“Our institution is impartial, accessible, and most importantly, free to all taxpayers. We are committed to timely, professional mediation and to escalating systemic issues to the highest levels for policy remedies,” he said.

According to him, the office has 14 days to resolve a complaint, with a possible seven-day extension where necessary. Unresolved matters may be escalated to the National Assembly in accordance with the law.

Mr Nwabueze said the Tax Ombud had already begun implementing measures to make the institution more accessible to taxpayers.

These include the launch of its website, an interactive contact centre and a case-management portal through which taxpayers can submit complaints, obtain information, track cases and receive assistance.

He said the office was also progressively digitalising its internal processes and service delivery systems to reduce reliance on manual procedures and improve efficiency.

The aim, he said, was not merely to introduce technology but to use it to make taxpayer services faster, more transparent and accountable.

He also announced plans to expand the physical presence of the office beyond Abuja.

According to him, the Tax Ombud is working with state governments to establish zonal offices across the country, with at least three expected to commence operations within the next few weeks.

He said the eventual objective was to take the services of the office closer to taxpayers across the country, including individuals and businesses that may find it difficult to access the institution from the Federal Capital Territory.

Taxpayer rights charter coming

Another major initiative, Mr Nwabueze said, is the development of a Taxpayer Bill of Rights and Obligations Charter, which is expected to be launched in the coming weeks.

He highlighted that the charter would explain the rights and responsibilities of taxpayers and set out the standards of fairness, transparency and accountability they should expect from tax and revenue authorities.

The document, he added, would be published on the office’s digital platforms and other public channels.

Mr Nwabueze urged tax and revenue authorities to support its dissemination through their offices and digital platforms, saying that greater awareness of taxpayer rights could encourage voluntary compliance, prevent disputes and build trust between taxpayers and government institutions.

Tax Ombud seeks stronger collaboration with revenue agencies to protect taxpayers’ rights
Tax Ombud seeks stronger collaboration with revenue agencies to protect taxpayers’ rights

Ombud seeks liaison officers

The Tax Ombud also proposed a formal coordination mechanism between his office and revenue-generating agencies.

He urged the agencies to designate liaison officers who would serve as institutional points of contact with the Office of the Tax Ombud.

The officers, he said, would facilitate the timely communication and referral of taxpayer complaints, early resolution and prevention of disputes, information sharing within the limits of the law, and identification of recurring administrative challenges.

They would also help with the implementation and follow-up of recommendations arising from interventions by the Tax Ombud.

Mr Nwabueze noted that such framework would allow individual complaints to be resolved more quickly while helping government identify systemic problems affecting taxpayers.

Stakeholders seek fairer tax administration

Speaking on behalf of the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the minister’s representative, Olufemi Olarinde, described the Office of the Tax Ombud as a new and independent institution established to address taxpayer grievances, promote systemic reforms and serve as a bridge between taxpayers and revenue authorities.

Mr Olarinde commended the office’s efforts to deepen collaboration, embrace digital innovation and promote accountability, fairness and trust in Nigeria’s tax administration.

Other stakeholders also called for greater transparency and consultation in the administration of taxes and revenue.

Representing the Corporate Affairs Commission, the Director of Finance and Accounts, Emmanuel Sunday Inyang, said a sustainable tax system depended on taxpayers understanding their obligations and being treated fairly.

He stressed the importance of transparency, efficient business registration processes and collaboration among government agencies, saying the protection of taxpayer rights should go alongside efforts to improve compliance.

The representative of the FCT Internal Revenue Service, Hassan Usman, also emphasised the importance of transparency and accessible services in building confidence in the tax system.

The Director-General of the Nigerian Shippers’ Council, Vivian Chimizia Azubuike, called for greater fairness and transparency in tax policies affecting the maritime sector, particularly small and medium-sized enterprises.

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Ms Azubuike also urged revenue authorities to institutionalise consultations with stakeholders before issuing new tax circulars.

She said fairness and swift resolution of disputes should become a standard feature of tax administration.

The engagement also featured a panel discussion involving representatives of the Manufacturers Association of Nigeria, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, fintech associations and the ICT team of the Office of the Tax Ombud.

The discussions focused on practical measures to improve taxpayer confidence, strengthen dispute resolution, promote digital innovation and improve collaboration between businesses and tax authorities.

The stakeholder engagement brought together representatives of government agencies, private-sector organisations, civil society groups and the media to discuss ways of making Nigeria’s tax administration more responsive, equitable and trusted.

Mr Nwabueze said the success of the institution would ultimately depend on cooperation between taxpayers and revenue authorities.

He urged stakeholders to see taxpayer protection and revenue mobilisation as complementary rather than competing objectives.

“The journey to a trusted tax system is a collective one,” he said.


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